Cape-Verde: World Bank to invest $4m in SMEs
The World Bank will grant $4 million (€2.9 million) to a project to improve the competitiveness of small and medium-sized enterprises (SMEs) and governance in Cape Verde, PANA news agency reports.The World Bank will grant $4 million (€2.9 million) to a project to improve the competitiveness of small and medium-sized enterprises (SMEs) and governance in Cape Verde, PANA news agency reports.
According to Head of the World Bank in Cape Verde Álvaro Gonzalez, this scheme aims to support the Cape Verdean government in its efforts to reduce the cost of doing business, diversify the target regions for foreign investment and increase opportunities for SMEs to access public tenders.
This sum, available during the first quarter of 2012 and distributed via a Competitiveness Fund, will be distributed in several areas and $1.85 million will be allocated to improving business opportunities for SMEs.
It will allow for the support of policies and institutional reforms that will improve investment opportunities, according to the World Bank.
A further $500,000 will be allocated to financial management, supervision, assessments and audits - an initiative that should help businesses manage their budget more efficiently, improve their presentations to banks and therefore increase their chances of obtaining credit.
This project should have a significant impact on the Cape Verdean economy, as micro, small and medium enterprises represent 97 percent of companies in Cape Verde, according to figures from the International Finance Corporation.
The World Bank believes Cape Verde is one of four countries that expect to achieve their Millennium Development Goals, Afrique 7 news website reports.
"Cape Verde, Ethiopia, Ghana and Malawi could achieve a large part of their goals by 2015 or even before," the institution stated, giving a special mention to Cape Verde for its numerous initiatives to improve its business environment.